Archive for December, 2017

Change is difficult. The first week of the new ruling requiring truckers to electronically log their hours using an electronic logging device, or ELD, is getting off to a bumpy start. The demand for trucking is still the same but supply of truck drivers is down. As a consequence we are experiencing fewer available trucks from the Pacific Northwest, Nogales, Yuma and the desert regions of California. Many truckers, particularly the independent operators waited until the very last minute to buy and activate the ELD and ran into some problems and delays getting the units installed or logging on to smartphone apps.

The new mandate is intended to cut down on accidents caused by fatigue from driving. Truck drivers are allowed 14 hours per day including driving time and waiting time at both the pickup and drop-off destinations. Once they reach those 14 hours they must take a 10 hour break before driving again. Additionally a weekly hourly limit has been imposed. As a result, we are seeing in some cases what used to take 2 days for a truck load to arrive at Earl’s dock now take 3 days. Less trucks and longer transit time translates into increased truck rates.

Change takes time and we expect the situation to improve gradually during the next few weeks as everyone becomes comfortable with the new system. Trucks have until April to install the device or they run the risk of being pulled from the road. We are working hard to make sure our customers don’t have to deal with any disruptions.

With the implementation on Monday of the Electronic Logging Mandate, which basically requires to almost all U.S. truck operators to use electronic logging devices, we are experiencing new challenges mostly affecting product brought from the Pacific Northwest and Arizona. The two main issues are that truck rates have increased between 10% to 15% and transit time from same areas that used to be two day rides are now 3 days. The new scenario seems permanent and we can only work at increasing the efficiency on the logistic side.